Older renters struggling as Local Housing Allowance rates remain frozen

A charity is urging the government to unfreeze Local Housing Allowance (LHA) rates ahead of next week’s Autumn Budget, warning that rising rents are leaving older renters struggling.

Independent Age claims that since LHA rates were last uprated, average rents have risen rapidly, leaving older renters struggling to afford essentials.

LHA determines how much Housing Benefit is paid to private renters depending on where they live and is supposed to cover the lowest 30% of the local rental market. However, rates have been frozen since April 2024 and for eight of the past 15 years.

Older renters faced with unimaginable stress

According to Independent Age’s findings, 69% of older renters receiving Housing Benefit do not receive enough to cover their rent, forcing them to make up the shortfall from their already-low incomes.

The data also reveals the impact of rising rents, with two-thirds of older renters receiving Housing Benefit having faced a rent increase in the previous 12 months. Of those, half saw their rent rise by more than £50 a month.

The findings show that six in 10 older renters receiving Housing Benefit have cut back on essentials to afford their rent, with 27% reducing their heating use.

Joanna Elson CBE, chief executive at Independent Age, is urging the government to unfreeze LHA rates.

She said: “Too many older renters are being faced with unimaginable stress and harmful cutbacks as a result of the freeze on Local Housing Allowance. Local Housing Allowance must be uprated so it matches at least the lowest 30% of the market at this year’s Budget, and the government must commit to keeping it in line every year.

“Our findings show that older renters are harming their health by not eating properly or using the heating, forced to isolate themselves, or threatened with homelessness. They, and renters of all ages on a low income, deserve certainty and security. The Renters’ Rights Act was an incredibly welcome start to redressing the balance between renters and landlords, but the work must continue to make renting more secure and affordable. It is clear that the damaging freeze on Local Housing Allowance must end.

“Renters of all ages will be looking to the Budget for reassurance they will be able to keep a roof over their heads without risking their health.”

As previously reported by Property118, the government has defended freezing LHA rates, claiming a range of factors were considered before the freeze, including “the challenging fiscal context”.